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Acquisitions and Dispositions (Tables)
 9 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Line of Credit Facilities The Company also increased its collective liquidity and collateral facilities by $3.4 billion as of the Acquisition Closing Date to meet the additional liquidity requirements related to the acquisition, as detailed in the following table:
(In millions)
Available on Acquisition Closing Date
Revolving Credit Facility commitment increase$802 
Revolving Credit Facility new tranche273 
Facility agreement in connection with the sale of pre-capitalized trust securities874 
Available as of December 31, 2020
Credit default swap facility150 
Revolving accounts receivable financing facility750 
Repurchase facility75 
Bilateral letter of credit facilities475 
Total Increases to Liquidity and Collateral Facilities$3,399 
Schedule of Purchase Price Allocation
The purchase price is provisionally allocated as follows:
(In millions)
Current Assets
Cash and cash equivalents$152 
Funds deposited by counterparties21 
Restricted cash9 
Accounts receivable, net1,802 
Inventory106 
Derivative instruments1,014 
Cash collateral paid in support of energy risk management activities233 
Prepayments and other current assets183 
Total current assets3,520 
Property, plant and equipment, net151 
Other Assets
Goodwill(a)
1,257 
Intangible assets, net:
    Customer relationships(b)
1,277 
    Customer and supply contracts(b)
610 
    Trade names(b)
310 
    Renewable energy credits124 
Total intangible assets, net2,321 
Derivative instruments531 
Other non-current assets31 
Total other assets4,140 
Total Assets $7,811 
Current Liabilities
Accounts payable$1,120 
Derivative instruments1,266 
Cash collateral received in support of energy risk management activities21 
Accrued expenses and other current liabilities690 
Total current liabilities3,097 
Other Liabilities
Derivative instruments562 
Deferred income taxes 338 
Other non-current liabilities115 
Total other liabilities1,015 
Total Liabilities$4,112 
Direct Energy Purchase Price$3,699 
(a) Goodwill arising from the acquisition is attributed to the value of the platform acquired and the synergies expected from combining the operations of Direct Energy with NRG's existing businesses. Goodwill was provisionally allocated to the Texas, East, and West/Services/Other segments of $424 million, $663 million and $170 million, respectively. Goodwill expected to be deductible for tax purposes is $337 million
(b) The weighted average amortization period for total amortizable intangible assets is 12 years
The following measurement period adjustments were recognized during the quarter ended September 30, 2021:
(In millions)Increase/(Decrease)
Assets
Goodwill$11 
Intangible assets, net(32)
    Total decrease in assets$(21)
Liabilities
Accounts payable$(270)
Accrued expenses and other current liabilities248 
Deferred income taxes(1)
Other non-current liabilities2 
   Total decrease in liabilities$(21)
Schedule of Derivative Liabilities at Fair Value
The fair values of derivatives assets and liabilities as of the Acquisition Closing Date were as follows:
Fair Value
(In millions)TotalLevel 1Level 2Level 3
Derivatives assets
$1,545 $155 $1,272 $118 
Derivatives liabilities$1,828 $207 $1,489 $132 
Schedule of Supplemental Information
For the three and nine months ended September 30, 2021 Direct Energy contributed revenue and income before income taxes as follows:
(In millions)Three months ended September 30, 2021Nine months ended September 30, 2021
Revenue$3,599 $10,718 
Income before income taxes2,010 3,457 
Schedule of Pro Forma Financial Information
Supplemental Pro Forma Financial Information for the nine months ended September 30, 2021 and 2020(a)
The following table provides pro forma combined financial information of NRG and Direct Energy, after giving effect to the Direct Energy acquisition and related financing transactions as if they had occurred on January 1, 2020. The pro forma financial information has been prepared for illustrative and informational purposes only, and is not intended to project future operating results or indicative of what our financial performance would have been had the transactions occurred on the date assumed. No effect has been given to operating synergies.
(In millions)Nine months ended September 30, 2021Nine months ended September 30, 2020
Total operating revenues$19,932 $16,039 
Net Income2,585 832 
(a) Pro forma comparative financial information for the three months ended September 30, 2021 and 2020 has not been included as computation of such information is impracticable as Direct Energy's pre-acquisition financial statements for the three months ended September 30, 2020 were not prepared in accordance with GAAP
Schedule of Classified Held for Sale
As of September 30, 2021, the following is classified as held for sale in the Consolidated Balance Sheet:
(In millions)(a)
Current assets(b)
$51 
Property, plant and equipment, net391 
Other non-current assets3 
Total non-current assets(c)
394 
Total assets held for sale$445 
Current liabilities(d)
14 
Non-current liabilities(e)
61 
Total liabilities held for sale$75 

(a) Property, plant and equipment, net for the East and West/Services/Other segments was $242 million and $149 million, respectively. The remaining assets and liabilities were primarily in the East segment
(b) Included in prepayments and other current assets in the Consolidated Balance Sheet
(c) Included in other non-current assets in the Consolidated Balance Sheet
(d) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheet
(e) Included in other non-current liabilities in the Consolidated Balance Sheet